SAN FRANCISCO — OpenAI has reportedly decided to shut down Sora 2, its high-profile AI video-generation tool, following a sharp decline in users and unsustainable operating costs.
Data from TechCrunch indicates that Sora’s worldwide user count plummeted from 1 million during its initial rollout to fewer than 500,000 recently. Financial reports from The Ankler further highlight the struggle, showing a 32% month-over-month drop in consumer spending, falling from $540,000 in January to $367,000 in February.
The downturn comes as the company faced daily video generation costs of $1 million. While a $1 billion partnership with Disney provided a significant branding boost, industry analysts suggest the “high-risk, high-cost” nature of the consumer model could not compete with the enterprise success seen by competitors like Anthropic’s Claude.
Shifting Power in Talent Agencies
As the tech world recalibrates, the entertainment industry is seeing its own seismic shifts. Major talent agencies, which serve as the backbone of Hollywood and the music industry, are currently in a state of flux.
The Team, formerly known as the Wasserman Agency, is officially up for sale. Meanwhile, United Talent Agency (UTA) CEO Jeremy Zimmer has stepped down and Creative Artists Agency (CAA) recently tapped WME’s Lucy Dickins as its new managing director for music touring.
In a recent discussion with Ben Sisario of The New York Times, industry experts noted that the real profit in the agency world has shifted from traditional talent representation to high-margin corporate marketing deals. This “entertainment playbook”—leveraging celebrity clout for corporate partnerships—was pioneered by CAA’s 1991 landmark deal with Coca-Cola and continues today with partnerships involving brands like McDonald’s, Wilson and La Croix.
Upcoming Event: All People Powered Live in Oakland
While the tech giants in Silicon Valley restructure, the independent spirit of the Town remains unshaken. On April 11, 2026, the Henry J. Kaiser Center for the Arts will host a unique fusion of culture and capital: Co-Founders + All People Powered Presents: Live Concert & Pitch Contest.
The event will feature three Bay Area founders pitching for $30,000 in funding before a panel of judges including Nate Jones of Kapor Investments and Monica Pool Knox of Good Trouble Ventures. The afternoon will also include performances by Bosko Kante & Da Soul Slapperz, known for their work with E-40.
This “Soul Beat meets Shark Tank” event brings the world of the Co-Founders musical to life, featuring a high-stakes pitch competition where three Bay Area founders will vie for $30,000 in live investment funding. In an era of shrinking AI budgets and corporate pivots, this event serves as a reminder that the most sustainable “intelligence” in the Bay Area is—and always has been—people-powered.
The Details:
- When: Saturday, April 11 | 2:00 PM – 4:30 PM
- Where: Calvin Simmons Theatre, 10 10th St, Oakland, CA
- The Judges: A powerhouse panel including Nate Jones of Kapor Capital and Monica Pool Knox of Good Trouble Ventures.
- The Vibe: Live performances by the Co-Founders cast and the legendary Bosko Kante & Da Soul Slapperz.
Jay-Z Momentum Builds
In music data news, Jay-Z is seeing a resurgence in listener metrics as he approaches major career milestones himself and with RocNation. With the 30th anniversary of “Reasonable Doubt” and the 25th anniversary of “The Blueprint“ looming, his Spotify monthly listeners have climbed from 40 million to 41.5 million since early February. The growth comes amid rumors of potential new music and upcoming stadium shows at Yankee Stadium.
All The Links
EVENT LINK: Co-Founders + All People Powered Presents: Live Conert & Pitch Contest
WSJ: OpenAI Shuts Down Sora
Sora Official Chat Room
Sora on X | IG | Facebook
CBS News: OpenAI pulls the plug on its Sora AI video app
Wall Street Journal: OpenAI Scraps Sora Video Platform Months After Launch
